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U.s. 20, S&p 8, Ron Johnson 7, Dennis Lockhart 7, Us 6, Hp Moonshot 6, Spiriva 6, Axiron 5, Atlanta 5, Lockhart 5, Lifelock 4, Hp 4, Copd 3, Google 3, Liz 3, Lauren Simonetti 3, Boris 3, Garth 3, Delta 3, Oracle 3,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    August 13, 2013
    11:00 - 1:01pm EDT  

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erks nney, the fight, what it means for the future of the retailer, the retailers not a fan of google saying the tech giant stole oracle's stuff calling the ceo an evil doer. musk unvailing the hyperloop. will people use the multibillion dollar idea to travel? it's like a big vacuum tube. all that, and so much more coming up on this hour of "markets now. ♪ dagen: reunited and it feels so awkward. connell: sending you on a hyperloop to cover the story. dagen: big story. connell: the justice department filing the antitrust lawsuit to block the big merger. american airlines and let's go to lauren now at the new york
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stock exchange to look at the stocks. hey, lauren. >> huge news, a big impact on u.s. airway's stock, down substantially on heavy volume right now, down 8%, 17 # 3 p # is the level so this entire sector is getting hit. now, american trades on the pink sheets, those down 27% right now, so this is a huge story. the doj said that you just reduce competition in the space which for consumers means higher air fares; right? the overall market, dow down 56 points, nasdaq down 12, s&p's down four points right now. the best performer on the dow is hp. it's up about two and a half percent so, again, we have techs leading the way today, and other strong sectors are materials and industrials right now, but it is a down market, and, in fact, declining stocks are taking out advancing ones by a margin of
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2-to-1. back to you connell: thank you. more on that coming up. the justice department is holding a conference call on the situation, lawsuit, breaking news. that's coming up at the bottom of this very hour. we'll have more on it then. as i said, the former american chairman coming on as well. much more on that coming up. now, this next topic we have not talk about. the upcoming debt ceiling debate because like everybody, we're sick of talking about the same thing year after year after year, shut down, no shut down, but now there are dc insiders who think this debate, this year may be the scariest that we've seen. we will talk about it today with juan williams, dc insiders, nobody knows more than juan. we talk about the theory, but is seems like ground hog day with the debt ceiling debate, but is it worse this time, you think, because of the dynamics in dc? >> it is worse in the sense you
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have people who are opposed on the position taken with regard to the deficit, connell, and it's a hard, hard position they are taking. i will say the good news is that the house majority leader, cantor, the republican from virginia, said there's not going to be a shutdown. that's good news for the market, but when you talk to rubiro ted cruz, mike lee, the senator from utah, these are hard line republicans who say they -- unless obamacare is defunded, they are not going to pass any increase in terms of the debt ceiling, and, of course, that leads to all kinds of chaos in the markets and potentially even higher interest rates and downgrading of the u.s. credit market. >> which is exactly what we care about here is what we do end up talking about it, but you mentioned republica, iwant to ask about the other side, the white house position because in the articles written in "politico" and business insider,
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and other places, the theory is the white house and obama administration is baiting the republicans now to go forward with what we were talking about was pushing for the debt ceiling debate and for shutting down the government. do you think that's what's going on at the white house? they really want it and think they can benefit from this politically? >> well, the political die dynac here is clear. that's why you are hearing from a range of republicans, especially the older, tea party republicans that history indicates that every time you come to this precipice of shutting down the government, refusing to raise the debt ceiling, republicans get blame. the leadership, republican leadership is saying we don't want it, cantor's words, in part because they see it as politically exposing them to damage in the 2014 races so it's highly a political conversation. the white house, by the way, you said, is the white house baiting them? i don't know if they are baiting
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them, but glad to let it wait and let republicans skewer themselves. connell: could that backfire or is it clear the republicans have the most to lose here? >> republicans have the most to lose, because, again, we come back to the heart and soul of the matter having to do with obamacare, and, again, you know, with the recent polls indicates is americans don't like it, but on the other hand, it's a fact, it's going to happen. the question is why would you risk very fragile economic recovery, credit ratings, the rest, and a good market, you know, wall street's doing well, why risk that just to make some kind of a, you know, political point that really is not going to take us anywhere? connell: right. this time could be worse or different. juan williams, as always, thank you, sir. >> you're welcome. dagen: shikup at jcpenney, resigning from the board of directors, and that's not the only change. connell: with more who is in, up, and out at jcpenney, we have the bottom line. break down the changes, liz.
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>> good to be with you. ronald, the sf-year -- 16-year veteran, basically coming in the board of jcpenney, bill ending the three-year campaign to turn around the retail company, ab we are hearing another board director could be named within a week or so. what we are seeing is, essentially, the stock is reacting and trading today, and jcpenney shares bouncing around, and sales are down, continue to decline at jcpenney, and the shares have taken a beating still this year off by about a third, and so what we are hearing, still, the echo effects of the disastrous discounting campaign run by ron johnson. that is still hurting the quarterly results at jcpenney, shoppers have been alienated by jcpenney's boonment of the discounts and bringing them back so that's key here to what is going to happen at jcpenney. interim chief executive, mike,
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still staying at the company. bill tried to push him out too, and mike is a veteran of jcpenney so the word on the street was that bill did not give mike enough time to turn around to turn around the struggling retailer. back to you guys. it's a developing story to watch throughout the day. one final point. the soros fund has not dumpedded shares as we know right now at this moment in jcpenney, still holding at 7.9%, that's george soros's fund, and, also, bill is holding his stake in jcpenney nearing about 18%. back to you guys. dagen: stay there, and i want to bring in mark, chief investment strategist at montgomery. scott, mark, a lot of drama, a stock in the toilet, down almost 42% in the last 52 weeks and down about 2.5%, a little more than that today. is this the right move to keep
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mike there? he was there before, ron johnson's out, mike is back. is this the key to turning the company around? >> well, it's an interim step. i mean, ultimately, they have to find a permanent replacement, somebody who instills confidence in vendors and suppliers, and as well, move back cogs mothers once loyal to pennys that find their way into other retailers, and as a consequence, not only attract them back to the stores to rectify the situation that ron johnson undid in the brand known as jcpenney, but at the same time, bring back as moment. time shoppers so, obviously, the financial condition of jcpenney is straightened out because as it stands today, they are on borrowed time. dagen: liz, i want to talk about the goal of these activists investors who come in, what did bill get out of this? is he rewarded by the new board members coming in?
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ron johnson was his guy, and it almost drove the company out of business. >> that's exactly right. also, bill pushed for ron johnson, former apple executive, to appeal to the young ire shopper -- younger shoppers, but the panelist is right. what happened was at jcpenney they alienated older shoppers, the dedicated shoppers at jcpenney, so, i mean, how do you get those people back in the doors? those shoppers back? the stall worths, veteran shoppers who go there because it feels like home for them in terms of shopping. you're right, he has to own it. he brought in ron johnson to run jcpenney, and he had a failed turn around strategy that alienated a lot of people away from the store. >> broadly speaking, mark, do you like the retailers in this environment? retail sales in the recent moat, autos up, up half of 1%.
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best performance since december. does the area look good to you? >> not particularly, actually, dagen, the fact of the matter is that's a sector underweight due to the fact we think while consumers are starting to recover, certainly, remarkably resilient in terms of spending patterns, we want to see job growth occurring, but the quality of the job growth and lack of wage income combined, really, make discretionary space a real tough area to invest in and see who are the winners and losers. i like the automobile companies because of the uptick on spending on automobile sales recovered almost fully what was lost from the recession, but as it relates to the big box retailers, that's a very challenges space, tremendous competition, and eroded by online shopping. >> begin the headline grabbing this latest fight as jcpenney, doesn't it also leave one, if you get negative headlines, it keeps customers out of the door,
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potentially, but, also, it leaves you vulnerable to other rumors or news. remember that cit rumor about the funding? >> that's right. dagen: again, does it leave jcpenney in an even more precarious position? >> interesting question because what you ask is do they get the financing needed? will the lending markets give it money if the distractions are going on at jcpenney? i think to the board, the veteran, again, a veteran retail executive, he's a calm, assured man. he will calm the waters. he's republicked in the industry. -- respected in the industry. listen, is jcpenney long for the world and last as long as it needs to to basically execute the turn around plan or broken up and sold for the real estate value under the sphoars? that's the debate going on right now. i'm giving it back to you. dagen: liz, thank you for the reporting, mark, both of you, see you soon.
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>> thank you. connell: larry ellison on "cbs this morning," clearly unhappy with larry paige from google. when we say "clearly unhappy," he basically called him a thief. that's unhappy, i guess. dagen: it would. musk with the hyperloop idea for high speed travel. would you use it? we'll ask that. connell: depends where you had to go, how fast you had to get there. lily, positive results for a drug therapy, to battle a big killer, lung cancer. interesting stuff scientifically and also for business. that's all coming up on "markets now." ♪ my mantra?
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peace of mind is important when so we provide it services you bucan rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. >> investors lost the appetite for yum brands, the sales slid in july, and lauren is watching the sales. >> yummy is a loser today. local media in china say the month of july for themfuls the hottest july in more than a century, 140 years, yet kfc, the 6,000kfc's in china owned by yum brands, their advertising hot food when customers want
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mcflurrys from mcdonalds and starbucks iced drinks, and things like that. that was an issue on top of the chicken supply issues, the avian bird flu fears, ect.. this stock getting hammered, and analysts are saying, according to several reports that i read this morning, that the recovery for yum brands is still awhile away. back to you. connell: lincoln, thank you very much. let's get to the oracle ceo lair ellison comments, back to the legal battle with google and why he's not a fan of larry page when the heads of google, co-founders. he was on with charlie rose this morning on cbs, cbs this morning, here it is. >> when you program, whether you write a program for the underwriter, you write it. you use the oracle tool or jobs for everything, and at the end, you press a button that says convert this to android format. we don't do what google does. we think they took our stuff, and that's wrong.
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that's another issue. >> you think they are evil? >> i think what they did was absolutely -- >> you blame larry paige? >> 100%. if what they did was evil, that makes larry paige evil? >> no, what he did was evil. the slogan is "don't be evil. >> exactly, that's what i'm talking about. >> he slipped up this one time. >> a good guy other than this one time -- >> this really bothers. i don't see how he thinks you can copy somebody else's stuff. connell: they went on, and they talkedded about apple and its stock performance with and without steve jobs saying he does not like the prospects for the company without jobs, and steve jobs thought google ripped off apple with the android phone against the iphone, similar argument in some ways there. dagen: bought an entire hawaii island, chill out.
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it's a hawaii island, chill out. connell: good advise. dagen: a story from yesterday, anot musk, announcing the new transportation system called the hyperloop. he worked on it with a team of engineers from tesla and spacex. the design has people in capsules traveling almost 800 miles per hour in a tube system. now, it is aboveground. we made sure of that. musk says it will feel more like a ride in an airplane than an amtrack car and without the turbulence of an aircraft. musk thinks in the end of the cost running between six and seven billion dollars, but that will be far cheaper than the high speed rail project working on in california which right now has an estimated cost of $70 billion, but it's like a vacuum tube like systems used in banks and department stores to send the paper around. connell: like a water slide,
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but, no, it's cool. jo had a nice report on it yesterday, she's out there, good for imus coming back from the ranch after labor day from the tube, back in a half hour. dagen: i just don't care about the tube, i don't like being that close to people. that's the problem. connell: get your own tube. dagen: you can get your own row car, by the way. connell: anything to get you out of here to send you to vietnam in the next tube out. oil markets clearly concerned about the consumer with the numbers coming in today. prices on the decline after a weak report on retail sales, which we'll talk about. dagen: investors in lily excited about a new drug therapy in cancer that scored well in trial. look how the dollar is holding up against a range of world currencies. ♪
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>> at 23 minutes past the hour, i'm patty ann brown with the fox news minute. crews battling an idaho wildfire have another challenge today, thunderstorms in the forecast. the blaze spread to 141 square
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miles in the central part of the state. evacuation orders issued in two communities; however, some residents want to stay to protect their property. an autopsy performed op a man killed last night when he fell more than 60 feet from the upper level at atlanta's field, he's 29-year-old ronald homer. the fall appeared to have been an accident. the 16 ocean county new jersey workers who wop a third of the $448 million meets the media today. they posed for a picture yesterday, and the nine women and seven men get 3.8 million after taxes. there was one other winning ticket in new jersey and one in minnesota, and those are your news headlines from the fox business. connell, back to you. connell: thank you. more to come in this hour, there's a big car racing interview, a revamp for the daytona speedway they are planning. we'll get to that. the government's lawsuit against
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the merger trying to stop that coming up, so let's talk oil. the price today, watching it closely because of the retail sales data. you see we are down a little bit, but up earlier, phil street joins us from the cme. 106 dollar crude oil, some sort of a range here? where do you see the price, phil? >> it's interesting. waking up this morning, up a buck, hitting 107.20, a news overseas there was better than expected economic data, a bombing of a pipeline in turkey, and then also a lot of traders watch inventories at curbing. it's a 1.5 year low, and oil inventories declined 20 #% in five weeks. looking at prices, they sold off ever since then. talk is basically the s&p 500 is selling off a bit right now, and, also, your u.s. prix is about 7.56 million barrels a
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day, the highest level since 1990 so we got two critical days coming up. api after the bell, poe tomorrow. we'll see where they fall. connell: back to the range, 106.17 right now, the upper end or resistance is where, and then what about on the other side of it. >> right around, 107.20 on up to 108. i don't see is 10 oil, you know, anywhere in the cards now. it has to come back down, breakthrough the 103 area, and 101.5 is the 50-day moving average, the first at the time #* test, but ultimately, it settles in the 90 #s once we get bills on the oil inventory data every wednesday. connell: good update, thanks as always. >> thank you very much. >> the justice department filing a lawsuit trying to block the u.s. airways mergers. that's the big story today. breaking in the last hour or so, and conference call should be starting in a few minutes.
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we'll monitor that and talk with the former chairman of amr, bob, coming up, strong thoughts, you'd think on this. we'll get to him. eli lily, success with a cancer fight in trials. investors buying into the stock. this could be big in terms of how cancer is treated. that story, stay tuned for that, some of winners today on the s&p 500. let's check it out with, well, the aforementioned eli lily up by 4.5%. we'll be right back. ♪
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dennis: connell: a lot more cut things up on market now. bob crandall is coming up. a cancer drug trial will they showed some positive results. they again will talk some car racing. a lot to get to. shares taking a hit with the news of this lawsuit. >> u.s. airways shares are getting uglier and uglier by the moment. they are down pretty sharply at
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the moment. you can see delta, united, all feeling the heat because of the doj blocking this merger. it is a big deal. as you can see, red arrows. not looking good. connell: boy, those stocks really getting hit. let's bring in rich and thin now. what is the latest on all of this. rich: they are on their way to creating the world's greatest airline.
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that anti-trust the patient says to block the merger because it would illuminate competition. the suit also claims the merger would result in airlines controlling 80% of the air travel. american airlines and u.s. air have failed to offer immediate responses. they had expected to complete the merger this year. back to you.
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connell: let us know if anything comes out of that. >> the justice department is making another bad choice. i should emphasize, i am not a great fan of mergers and consolidation. the government as a whole has already permitted this. you have three big competitive
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bills. i am not talking about next year or the year after that. i think in the long term, both u.s. air and american failed. it strikes me that they are suing. if you do not want consolidation in the airline industry, you do not let them merge. connell: this would create the largest airline in the world. the competition would be lessened as a result of that. >> i think those arguments are
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completely spacious. if you end up with two very large airlines, ineffective competitors, which is what you have today, you do not do consumers any good at all. you do consumers harmed as well. the other thing is you further weaken u.s. aviation. the justice department, it years ago, gave access.
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it tilted the marketplace. by refusing to allow them to become a cub tentative competitor. connell: i noticed that you talked about your initial findings. you are not, over the years, a big fan of airline mergers, generally speaking. >> nothing changed my mind. you have to let others consolidate for competition.
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connell: we will see how this works out. bob crandall. thank you. good to talk to you. dagen is coming back at the top. a publicly traded company undergoing a renovation at daytona. we will get into that coming up. markets now is coming right back. ♪ with the spark cash card from capital one... boris earns unlimited rewards for his small business. can i get the smith contract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day. great businesses deserve unlimited rewards.
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lori: i am lori rothman with your fox business brief. in detroit, a judge has the states bankruptcy case. 18 billion liabilities. the national federation says optimism is out. 94.1. that is up six times of one point. more people are paying their
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dagen: international speedway corporation breaking ground last month on a renovation of flagship. they are trying to boost attendance. i finally get to interview you, lisa. why do this now?
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>> $8.2 billion tv deal. a lot to do and choices to make. we will make a better experience for them. dagen: attendance has been a struggle. ratings have somewhat stabilized. this deal was quite easy to put together.
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we have rebounded. our attendance is rebounding. it will appeal to a younger group. dagen: the seats will be wider. there will be more restrooms. >> we will have a lot more opportunities for sponsorship. there will be revenue coming in from the sponsorship side. dagen: there are 11 other tracks. at which of those tracks will you also be reducing capacity? >> we will be renovating other tracks.
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we will take some of the key elements overtime to some of the other tracks as well. for the next five years, we will pretty much focus on our core business. i think after that horizon you will continue to see major changes at some of the other tracks as well. dagen: what if the product on the track does not improve? when it comes to, you have teams struggling for sponsorship dollars. some of the tracks, people do not like the types of racing they are seeing. what is the product does not
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improve or it continues to turn fans away? >> as we move forward, it is not just a competition. that is our significant element that we need to stay focused on. i think all of that comes together. dagen: your son is in racing. do you see down the road handing this off? this is a family started, family owned and operated business. >> he is so passionate about
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racing. he loves it. i think he will be racing for some period of time. dagen: good luck to him. >> thank you very much. dagen: lisa, please come back. actually, i will come see you. connell: breaking news now that we have been following on this department of justice lawsuit. we have been flashing some breaking headlines at the bottom of the screen. they got into a discussion about less competition at reagan national airport in d.c. we also want to talk more about another big corporate story today. that would be jcpenney.
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bill pac-man and resigning from board. that stock is down by 2% today. >> jcpenney is something i sold off of a little while ago. i decided i would not touch this with a 10-foot pole. i do not understand it. the first rule is to know what you are trading. i think you are better off looking at walmart and coles. dagen: if you do not understand a retailer, that is not a good sign for the company. thank you very much, stephen. we will talk to you soon.
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eli lilly with some great news. we are talking about lung cancer. investors are buying into this hope. ♪ in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's allart of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason
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connell: a bigger kind of company day here today. we want to take a look at shares of eli lilly. there is the stock price. almost a 4% gain. we are talking about what this means. thank you, doctor smith, for coming in.
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cancer treatment will be more targeted than it has been in the past. overall, very big deal? >> we have found that there are certain targets. connell: does that mean that the therapy will be used less? >> i think that that will always be the hope. connell: where are we now and how much progress have we made? >> i think it has the potential to be a big deal. what is most particularly important about this is why all lung cancer is the most common killer of all cancers in the
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united states, the particular type of cancer this drug targets is something we don't have therapies for. connell: this is a real breakthrough in that area. >> right now we treat with standard chemotherapy. it is relatively ineffective. connell: we hear people talk about that you know, the phrase gets thrown around will they ever find a cure for cancer.
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>> they are trying to change it into a chronic disease. connell: this is good news for the company. dagen: the justice department moving to plot the american airlines merger. much more overhead with cheryl on the lawsuit that was just filed. you cannot make this up. what can they come up with next? markets now is on it. ♪
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cheryl: i am cheryl casone. the justice department filed an antitrust lawsuit. shares of u.s. air taking a hit. we will examine the case and the motive. the largest stockholder bill ackman has resigned from the board. we have a bowl debate. the dow is down 28 points right now. back-to-school shopping is lagging this month. the airline pricing model coming to the hotel industry. lots of extra fees and charges. we have an analyst had with what
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that means. we have stocks now and every 15 minutes. we have lauren simonetti on the floor of the new york stock exchange. if you look at the broader market here, the s&p is trying to turn positive. we do have the ten year yield. u.s. airways down substantially after the doj blocked the merger with american. the volume is pretty big.
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cheryl: thank you very much. as we watch that stock, you have been filing suit to block the merger. >> a couple of different statements, cheryl. some executives believe that the airlines can survive on their own. the government says that they will listen to settlement proposals even though it's goal is to fully prevent this merger. merge american airlines, this
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merger means for airlines would control 80% of the domestic passenger industry. both airlines can go on without each other. they will continue to provide important competitive strength. they have to offer lower prices. cheryl: rich and thin. let's bring in george hamlin. he joins me now.
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the doj is going to let northwest and delta merge. does he have a point, george? >> i am not a fan of the consolidations that date place today. cheryl: they have about a thousand of the same roots. what do you think that they truly want, as far as concessions go for the airline?
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what is the doj really wanting here? >> it may be forever. cheryl: when this deal was struck, american was in a much weaker spot than they are now. you can operate independently, but american was already in trouble because of labor contracts and higher fuel prices. >> one of the things we are likely to see is raising the u.s. airways cost structure.
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likely, at the former u.s. airways, they will go up. cheryl: one of the things i was reading, the attorney general was saying that rural counties in texas would not be served. i do not see southwest and jet blue particularly going away, no. there is a significant portion of the carriers, they have three
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criteria for selecting airlines and flights. what will happen is the availability of low pricing is likely to be less. we will see these examples. cheryl: you can argue whether or not it should be put inside a lawsuit. $6 billion. thank you very much for joining me on the phone. appreciate it. another breaking news story. the eternal drama on the board at jcpenney. bill pac-man resigning his seat just days after he went public
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calling for the ousting of the current ceo. take a look at the stock. taking a dive on the news. there has been a lot of pressure. let's bring in two people who know very well what could happen to jcpenney. this is all happening right smack in the middle of back to school season. >> bill has been pretty disruptive from the time he got there. i do think that this is a better solution.
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i think jill not being there will not be a negative. so, yes, i am in favor of it. the airing of the dirty laundry certainly has not helped the company. this, at least, may put some of that to rest. cheryl: there was an agreement put in place this morning. 18% of the company, he holds. the future of those shares, certainly in question. the problems with jcpenney has been one of a huge distraction. jcpenney really needs to do better with the disclosures. we know that he did not like mike being brought back on board. i have heard analysts say
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bringing back the former ceo is like calling back the plumber to fix the problems at the company. gerri yang came back to yahoo! and did not fix the problems there. the problem with jcpenney is the clock. they are racing against time. they do have a credit facility. we are up against the back to school season. the younger crowd did not come in and the older crowd left the company. cheryl: she is talking about ron johnson. he comes in from apple with this whole new strategy which failed.
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>> bill was on board with mike coming back. i am in favor of that. did i like his offer on the dream team? sure. it is not that the idea was that, it was just airing it publicly when it was not going to happen probably was not a great idea. >> i thought that bill ackman wanted him out. >> no. he was mad because they had not started the search for the full-time ceo.
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until three weeks ago, they apparently had not been looking for a full-time ceo. bill was upset about that. after all, they were really struggling. he can run positive comps in the back end of this year. cheryl: does his exit today, is that a good thing for jcpenney? >> it is a good thing. it does not change things very much. >> less distraction. you do not want to rock their financing world.
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cheryl: thank you to both of you. appreciate it. >> thank you. cheryl: before you plug your smart phone into one of these public charging stations, you need to hear a big warning. oil is still in the $105 range. we will be right back. ♪ with the spark miles card from capital one, bjorn earns unlimid rewas for his small business take theseags to room 12 please. on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] greabusinesses deserve limited reward
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space six. cheryl: not a lot of news on the 30 dow components that you are looking on your news right now. let's take a look at what it means to the dow. 78.21. home depot is taking off for the dow right now. let's bring in lauren simonetti.
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>> blackberry shares. the company put itself up for sale yesterday. some investors and analysts are making comments today. they raised the stock to an outperform. it is a nice healthy premium. cheryl: lauren, thank you very much. we will see you at the bottom of the hour. a striking deficit taking some of the pressure off of congress. as the debt clock keeps ticking upward, can they afford for the congress not to act?
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you say that the s&p could be hitting 1850 by next spring. bernanke has warned that any lack of action is a threat to the market, a threat to the economy. do you think it can really trend higher when you have for nine deed saying that there is a problem? >> the market could consolidate for a period of time. i think congress is not likely overall to do something with it at this point. they are probably destined to improve this year. cheryl: i am talking about long-term fiscal policy. you are out of the woods right
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now. long-term, social security, medicare, medicaid. the markets have not really quite latched onto that. >> these are not events that are likely to do the market significantly. >> they will continue to be problematic. especially when you consider what has been happening. it has been a big drag on the economy. we have had subpar growth now for a couple of years.
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a lot think that the economy will rebound in the next couple of quarters. it has not rebounded yet. i do not think it will be a big problem if they do not do anything right away. the longer they go, the more problematic it will be. cheryl: there is concern about if the consumer is spending, how much are they spending. what you think happens with that particular sector for the rest of the year? are you still bullish? >> overall, the situation is getting better. confidence is improving. companies that are in all of their revenues domestically, i show a profit gain of 60%.
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a decline of profits of about 7%. you should see profits accelerating again. cheryl: how're you feeling about the bond market right now? >> nothing more than a reflection on whether the fed will pay for or paper. the bond market is worried about it. pay attention to the bond markets. if the bond market keeps going up the deal, it will be a problem for the stock market. cheryl: thank you, gentlemen. retail sales for july, we were just talking about it. you are in the middle of back to school right now. jeff flock is live at sears
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coming up. they are dealing to get your business. dealing. which really. ♪ this man is about to be the millionth customer. wod you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. ngratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. your money needs an ally.
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>> 44 minutes past the hour. i and patty ann browne with your fox news minute.
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an autopsy will be performed on a man who was killed after he fell last night at turner field. the fall of peers to have an accident. o pistorius will be served with and indictment. they have completed their investigation. he says he accidentally shot her. he has a court appearance on monday. cory poker cast a vote this morning in today's new jersey primary. it is all leading up to a special election. those are your news headlines on the fox business network. cheryl: thank you. retail sales numbers came in
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week for the month of july. this is went back to school shopping really got under way. jeff flock is that the sears store in illinois. jeff: they do have a back to school special. a deal where i can get an auto change for $9.99. jeff: everyone wants to get a piece of back to school. take a look of the guys that have actually done well. part of that is automotive. you have had some good pickup in business. >> when things get tight at home, people tend to delay purchases. the numbers are good.
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jeff: it looks like somebody is messing with some breaks over there. you have soldiers solve as doing everything a dealer can do. >> yes. it is a really important time to be thinking about back to school maintenance. everybody knows traffic picks up when school gets back in. it is a great time to have your car checked. jeff: what is going on over here? >> this is part of our multiple vehicle point inspection. ninety seconds. the newest technology in the industry. jeff: how many stores do you have? >> 760 stores. jeff: the stock is holding pretty steady.
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year to date, up about a percentage or so. theestock has seemed to stabilize. cheryl: i am sure there are a few jcpenney shoppers going over to sears. jeff flock, thank you very much. it is the fox business all-star showdown. we started with a. now we are down to only four. robert luna is back to duke it out with scott martin. it looks like scott will have to bring his a game as he and robert make two new stock picks.
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do not miss the all-star showdown. small business not so confident for the future. the problems facing the nation and job growth engine coming up. should you invest in the stocks? we have an analyst coming up. ♪ my mantra?
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of america, small business not until -- the head of the fellow small-business men concerns, complaint, pessimism. and in these public charging system. and stocks now, justice department lawsuit that stops the merger of u.s. airways and american really hitting the airline sector hard when the news broke in the 10:00 hour, lauren simonetti and the stock exchange with a further look at how stocks are fairing now. cheryl: the way stocks trade, take over u.s. airways there is the ticker, down $1.55 which is a%. pretty heavy volume of forty-seven million shares and other airlines, delta is down 6.1%, southwest down 3% with the red arrow in the entire sector. this is what many people
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particularly consumers third with, if you reduce the number of airlines competing for these, essentials reconsiders could pay hundreds of millions of dollars of year. cheryl: we shall see what the airlines come back with. thank you very much, good luck with the airline sector. some other big economic news, the index of small business optimism has some suggesting we should rename this the pessimism index. the monthly confidence survey of less than a point from the month before and still wonder the average reading of 100 only 9% of small-business owners surveyed say now is a good time to expand business. cliff green ee saying guerrilla capitalism, what do you mean by a guerrilla capitalism? >> in the old days you had strategic markets where you go out and make a big fight for the big push, a big initiative and
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when you are so scared about everything and what the government is going to do we pull back, tactical strikes, ira few people from one small area that are not willing to launch a whole new department or new division. >> it is healthcare. you told me before you talk to a lot of colleagues, not going to hire and pay for health care costs. >> we have a cap of 48 employees, that is crazy business, it is useless for the economy as we try to play it this game. cheryl: let's call it the pessimism index. not only 9% planned to increase employment but 7% said a sales will be higher. why expectations are so low even on sales. >> back to the guerrilla concept as we are worried when is coming down the pike. noaa is willing to make a bet on success especially for us,
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keeping it really lull and hoping something comes out but not expecting anything to materialize. cheryl: there is a report that the irs is sending letters, 20,000 letters to small businesses. think mom-and-pop shops, they may have to further account for their accounting if you will. the irs seems to be targeting small business right now all. are you seeing that happening are seeing evidence of that happening? >> we are not a cash business but at any given moment it seems the irs lobs grenades over the old wall and says deal with this. most are scared what happens tomorrow, 20,000 letters, prove to was you are telling us some truth. hard to disprove. at the same time you never know what tomorrow will come, who is to say they won't lower the ccp from 15 employees to 25, causing great uncertainty.
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cheryl: one thing i want to ask about, president obama was on an amazon distribution facility a couple weeks ago talking about job creation but a lot of gop leaders and small bookstore owners are furious that the president would give such praise to amazon when all of their companies are going out of business. you are in the book business. what did you make of that? >> i will tread lightly because it is a big partner for us but the independent bookstores as well, it is dangerous to have one big player. they are so good at what they do they are driving a lot of people out. their new apps on the phone, bar code scan and purchase in the store create a gigantic show room facing the rest of the world for amazon so amazon is a powerful player out there. as soon as any politician makes nice with them it drives everybody out the door. cheryl: they are hiring several thousand people which we need. can't hit them for that.
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thank you, good to see you. talked about it early on, continuing fears, earlier we were down. markets are 29 points but that could change depending on what dennis lockhart has to say, he will be speaking in eight minutes or so, we will get some more details on that story coming up. it can be to breathe and man, you know how thateels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops.
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tracy: i am tracy byrnes. and die voted to go on strike next week. management over pay and benefits. and it cost $1.5 billion in lost production. to resume taking a hit this year, and partly to blame after news of smog in beijing foreign tourists for the chinese capital fell by 15% in the first six months. turning to the no. 3 international travel destination in new york. and the credit card bills on time, the union says the rate of credit cards are two months late in the second quarter, zero.6%. and the lowest level in 20 years. that is the latest in a fox business network giving you the power to prosper. [ male announcer imagine this cute blob is metamucil.
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>> you may be checking into a hotel but that may cost you more thanks to pillows, hotels, airlines, counting on extra fees. u.s. hotels, $2.1 billion, everything from valley parking and early checkout. check it on the hotel in the morning, it makes sense that they would do this, follow the airlines, in extra fees but can hotels succeed in this? >> i read the new york times article you are referring to and they talked about surcharges being up by 5% last year, look at industry revenue so they were up by 7% last year in the u.s. so i would say surcharges in
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percentage of the total revenue for hotels is down recently. i just don't think you are likely to see the hotel follow the lead of the airlines and do this. all the hotel ceos are aware of the backlash against airlines. you are going to see a few hotels do this. is not a big industry. cheryl: the hotel industry is more competitive with pricing than the airlines are because there's more capacity. you look at all the big names, we heard from the big players, i want to start with marriott international. they met your expectations. are you happy with how marriott is executing revenue? >> they are performing in line with the industry so they increase revenue per available room by 5% in north america so they are in line with industry.
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we think it is barely valued right now which is how we see the sector right now. cheryl: everything fairly valued. what about high at? marriott is going global and pushing the middle east. what about the other side? they like those numbers? >> they are outperforming in terms of the really underpenetrated internationally, they are one of the best pipelines' globally but when you look at the stock right now it is trading at a ratio of 60 times. the market is overvalue when the growth of the stock significantly overvalued. cheryl: i have breaking news i need to get to bed thank you very much, appreciate your look at the hotel sector, we are getting breaking news into fox business. the fed president dennis lockhart just beginning a speech
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in atlanta potentially offering more clues on thh timing of the fed capering or see this in september, rich edson standing by in washington d.c. looking at the comments and just got a copy of the speech. what does he havv to say? >> dennis lockhart offers more uncertainty about whether the fed will begin pulling back, lockhart says he doesn't expect to have enough data by september's meeting and because of that he would advise against the fed committing to a precise beginning to end plan to fully phased out asset purchases. lockhart says the decision to proceed, whether it is in september or october or december of to be thought of as a cautious first step. cheese as, quote, i will need to get comfortable that the employment progress we have enjoyed is not stalling and this inflation pressure is not building and in a reminder the program will one day come to an end. lockhart says quantitative easing clearly was intended to have a beginning and end.
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it is not q e infinity. lockhart says between now and the september meeting the board will only have one more employment report, two inflation reports and the second quarter gdp revision and preliminary signal about the third quarter, not enough in his mind to be sure of his outlook on the economy. cheryl: rich edson with a breaking news out of washington. i wants to let you know we are expecting mr. lockhart to take questions from the audience today, around the top of the hour, speaking in atlanta. we will bring that when it happens and we are monitoring that speech. i want to go to the floor of the new york stock exchange, chief economist -- a couple of things. i want a quick reaction from you. we got statements from dennis lockhart hedging his bets on capering, i need more data, i don't know. do you put any meet in trading based on what you heard from
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lockhart? >> the s&p 500 is against resistance, a three or four point pop. of course he doesn't know what to do if he knew what to do it would be easy. this is going to be difficult and we have to wait until september and we will see some movement. will create opportunity for guys like us to trade. cheryl: you are watching the airline sector and i want to get some reaction to what you are seeing in airline stocks. >> this is an opportunity. these two names like i said before we don't really know them but like delta in our wheel house trading down $19. with the name like that which i follow you might get a dollar out of this if you pick them up today. cheryl: you are not that bothered about the buying opportunity. >> it is a buying opportunity for airline names. file the transports, they're interesting, the airlines of the scariest part because the price of oil really does hamper them. this is a chance to pick up on the truth.
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cheryl: interesting. it is the sector we watch closely. thank you very much. also traders on the floor of the cme are listening to terms from dennis lockhart. let's bring in phil flynn, same question to you. kind of hedging his bets in the speech and there will be a q&a but he doesn't seem to be committing to september. >> he really wasn't. if you look at comments he made earlier on he still wants to see a stable job market and some signs that there is some inflation before they move. that is not a big surprise. we did see a pop in futures, in the s&p, a big pop as soon as the headlines came across. the gold market moved down after the comments so the lack of tampering or possibility does change the dynamic somewhat. normally you would think if we pull back on capering, if we
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pushed tapering off, that should give commodities of boost. we are not seeing that a lot. crude oil is down 20, they are still down a little bit. products are strong but not so much because of the fed. they're stronger becausbout proe north sea. they are leading the way on crude and there are a lot of concerns about the lack of libyan oil and the fact that production is in european refiners might go into maintenance early and won't wait around for the oil and might shutdown, the margins are not that good anyway. what that means for u.s. supplies is less imports of gasoline from europe and probably spend more gasoline in europe. that dynamic is changing so those currents are bringing products of. the big thing back to the fed statement, what we are worried about and the fed is cracking their head, $85 billion of bond
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purchases you don't see inflation. cheryl: what are they yelling about behind you? >> the s&p 500. this thing just jumped. did you hear what happened? it was exactly it. now the mortars are coming in and these traders are adjusting to the comments right now. the big statement if it moves out again today you are seeing a lot of orders coming and in the aftermath. cheryl: interesting, talking about the debt ceiling or gdp. we will continue to monitor those comments and see what it does in the pits of the cme. thank you so much. $600,000 homes for border control agents courtesy of view, the taxpayer. you are going to love this. and as we go to break we listen to the big names moving to the upside on the nasdaq, micron, biogen, e. bay.
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cheryl: time for a west coast minute, 21 homes on the arizona border for border patrol personnel but at a cost to taxpayers extended thousand dollars according to investigation by the arizona republic. u.s. customs and border protection bureau build the homes to renew employees because the agency argues there isn't enough quality housing near the border helm, and anyway, housing affordability is falling, rising home prices and mortgage rates and san francisco and other coastal communities are beginning to shut out a large
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chunk of the population, 36% of californians can of forcing believe family home in the second quarter but that is down from 44% in the first quarter of this year. finally e as weakening to a 30 month low on the stock market, the price in large part due to the reopening of a pipeline to the marine terminal. prices are down because shippers have been transporting by rail to west coast refineries. that is your westcoast minute. public's smart phone charging stations. they're all over airports, bars, public streets, but the buyer be where. security experts are warning you could download a computer virus your phone. scientists force a phone to make a call but a more malicious code could still banking information, il passwords, text messages or even a tracked the movements of cellphone voters. don't sit we didn't warn you. when you go to the airport
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benatar there, plug into the wall, easy to do. we are monitoring breaking news out of atlanta up, the fed president dennis lockhart, you could see some market movement. we have more comments from him coming up. we are looking for that for you. also this, which u.s. cities top? adam and lori introduce you to the man in charge of the place for skull the best for business and careers. you remember these books? choose your own adventure? they are going high-tech and it needs your help. coming up, lori and adam walking in, that smiling face of hers.
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>> welcome back to "markets now ." lori: the justice department challenges the u.s. air,
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emergencier. stock is selling off. >> this is not the first time they were involved in the merger. this hour, hear exclusively from frank lorenzo, the man who saved and steered continental airlines through bankruptcy and tried to do the same with the airlines, and they stepped in when he tried to merge with eastern. >> off the board at jcpenney, cutting a deal to get what he wants. >> number one in the u.s., des moines, iowa mayor on why "forbes" ranked his city as number one. >> the privilege not to be americans as the u.s. cracks down on global tax evaders. >> live coverage and analysis of dennis lockhart's q&a coming up. >> busy hour. let's get you updated on the markets, floor of the new york stock exchange, and,